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3G background-why Buffett likes them


netnet

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Easy peasy, all it takes is complete trust and the ability to send tens of billions of dollars in equity on a week's notice plus unmatched access to credit markets

 

No wonder, he likes 3G, he provides some funding and his reputation, and they do all the work. It's a great arrangement for the old fool, who would not like such a deal and the folks that make it possible?

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Update on what the 3G principals are up to recently - They have seeded a new type of activist fund managed by Munib Islam, who ran activist campaigns at Third Point for quite a while.  LTS One is the name of the new fund, no outside money so far.

 

https://www.reuters.com/business/exclusive-3g-founders-launch-investment-partnership-with-former-third-point-co-2021-07-27/

 

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Bloomberg has an article highlighting the 3G principals' latest troubles -

 

https://www.bloomberg.com/news/articles/2023-02-09/americanas-crash-casts-harsh-light-on-jorge-lemann?srnd=premium

 

https://www.reuters.com/business/retail-consumer/americanas-billionaire-shareholders-say-they-were-unaware-accounting-problems-2023-01-23/

 

Lojas Americanas had off balance sheet supply chain financing that was apparently hidden by previous executives.  (almost $4 Billion dollars worth)

Edited by gfp
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5 hours ago, gfp said:

Bloomberg has an article highlighting the 3G principals' latest troubles -

 

https://www.bloomberg.com/news/articles/2023-02-09/americanas-crash-casts-harsh-light-on-jorge-lemann?srnd=premium

 

https://www.reuters.com/business/retail-consumer/americanas-billionaire-shareholders-say-they-were-unaware-accounting-problems-2023-01-23/

 

Lojas Americanas had off balance sheet supply chain financing that was apparently hidden by previous executives.  (almost $4 Billion dollars worth)

 

Thanks for sharing. I was never a big fan of Berkshire's dalliances with 3G and I think Munger was a lot more suspicious of their methods than Buffett. Funny that these guys at 3G "idolized" neutron Jack. If you read the book Lights Out, Jack was doing borderline fraudulent things at GE pumping up its stock constantly by making up fake earnings from finance division & boosted the leverage dramatically. He also blew the whole succession thing with Immelt who was a big moron. No wonder then Lojas Americanas suffered even worse fate than GE. 


I think the results from 3G partnership were disappointing for Berkshire in the end. 

 

Edited by Munger_Disciple
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